Daily Management Review

Pace Of Hiring Post Lockdown In UK Fastest Since Late 1990s, Shows Survey


Pace Of Hiring Post Lockdown In UK Fastest Since Late 1990s, Shows Survey
The speed at which hiring after the lifting of lockdown measures in the United Kingdom took place in June was the fastest since at least the late 1990s as employers signed most permanent staff while the shortage of appropriate candidates reached record levels. This trend has driven up starting pay, showed data from a recent survey.
Since the Recruitment and Employment Confederation's (REC) was launched almost 24 years ago, vacancies in June also reached their highest.
"Recruiters are working flat out to fill roles across our economy," Neil Carberry, chief executive of the REC, said. "The jobs market is improving at the fastest pace we have ever seen, but it is still an unpredictable time."
The British government’s huge job subsidy programme had supported the labour market of the UK through the Covid-19 pandemic induced lockdowns and with the economy now opening up, hiring is bouncing back.
The government there is slated to lift the remaining of the Covid-19 related restrictions on July 19 as pubs and restaurants will be allowed to cater to greater numbers of customers and large-scale public events will also be allowed to restart.
However getting the right staff has become a problem for many companies as many of the foreign workers had left Britain during the coronavirus pandemic.
In June, the starting salary for jobs saw the highest rise since 2014, showed the REC survey, while the increase in hourly pay rates for short term staff was also the highest since 2004, According to analysts, the Bank of England will likely take a note of these elements when it makes an assessment about how long a recent rise in inflation is likely to continue.
Despite the shortage of availability of workers, more people are likely to be looking for work as the coronavirus emergency job subsidies of the government come to an end between July and the end of September, Carberry said.
On Wednesday, profit forecasts were raised by two British recruiters - PageGroup and Robert Walters, and citing an increase in hiring of people in a number of countries that they operate in. 
However dicing on whether the surge in hiring was an indicator of a temporary pent up demand or the beginning of a longer-term increase was not appropriate at this moment, said PageGroup's chief executive.
And as the British economy continues to reopen, the problems being faced by many employers in finding the right workers for vacancies were highlighted in a separate survey that was published by the British Chambers of Commerce (BBC).
About 52 per cent of the British companies trued to hire people in the second quarter of 2021 which was the highest since immediately before the British economy was hit by the pandemic, the BCC said. And about 70 per cent of the companies seeking to employ people were finding it difficult to hire staff and this number was 7 per cent higher compared to the same number in the first quarter.